Questions: Buying a townhouse..

**swordsman** · April 2nd, 2007 10:56 AM

Finally tired of renting, so we're planning to buy a small two-storey, two-bedroom townhouse. We plan to put this thru in a housing loan thru a bank. If the loanable amount is sufficient and within our budget, we'll push thru with the loan(and hopefully be approved) and are expected to give an 'earnest money' while the loan is being processed.

A bit of complication is that we currently are dealing with a middleman since the owner already migrated abroad.

So how would this suppose to go down? Please advise of the step by step process that we should expect to go thru from filling-up of loan application, appraisal, loan approval, payment of capital gains, transfers of title, etc? Any hints, notes, do's and don'ts, timelines would be very helpful as well.

Specific questions i have in mind are:

- At what point should we give the earnest money? Is this refundable?

- Earnest money should be named to the owner, right? How is this done when owner is abroad?

- Since the owner is abroad, how would we proceed with the sale?

Thanks in advance!

**1D4LV** · April 2nd, 2007 11:17 AM

Originally Posted by swordsman

Finally tired of renting, so we're planning to buy a small two-storey, two-bedroom townhouse. We plan to put this thru in a housing loan thru a bank. If the loanable amount is sufficient and within our budget, we'll push thru with the loan(and hopefully be approved) and are expected to give an 'earnest money' while the loan is being processed.

A bit of complication is that we currently are dealing with a middleman since the owner already migrated abroad.

So how would this suppose to go down? Please advise of the step by step process that we should expect to go thru from filling-up of loan application, appraisal, loan approval, payment of capital gains, transfers of title, etc? Any hints, notes, do's and don'ts, timelines would be very helpful as well.

Specific questions i have in mind are:

- At what point should we give the earnest money? Is this refundable?

- Earnest money should be named to the owner, right? How is this done when owner is abroad?

- Since the owner is abroad, how would we proceed with the sale?

Thanks in advance!

earnest money = reservation. it can be deducted from the balance or the initial payment depending on your agreement with the broker/seller.

yes. the earnest money is named to the owner. because the owner is abroad, he should have a representative here with SPA to whom you can talk with. the same (SPA) should apply with the sale.

**Chip** · April 2nd, 2007 12:14 PM

Ernest money is usually non refundable. If you back out of the sale, you lose it. if you continue with the purchase, its deducted from the total price.

Like what happy gilmore said, be sure that the person you are dealing with has SPA- special power of attorney, otherwise your deal can fall through and you may end up losing.

Hopefully other tsikoteers can answer your queries in more depth. Goodluck with the purchase

paging vanwilder

a little off topic: totoo bang condominium units usually revert back to the developer after XX number of years? I read here before na thats how ayala operates. If so, how about townhouses?

**swordsman** · April 2nd, 2007 02:41 PM

Originally Posted by Chip

E
Like what happy gilmore said, be sure that the person you are dealing with has SPA- special power of attorney, otherwise your deal can fall through and you may end up losing.

Thanks guys! Is the SPA something that me and the bank should be provided with by the representative of the seller/owner?

Isn't the SPA one of the checklist of the bank when the loan is applied for a property wherein the owner is not around?

**boybi** · April 2nd, 2007 02:43 PM

First, get a photocopy of the Title of the land and the tax declaration of the town house and have it checked with the Registry of Deeds to make sure that it is in the name of the supposed owner and it is not mortgaged or being contested upon.

Second, ask for an SPA from the middleman.

**swordsman** · April 2nd, 2007 03:38 PM

yup, were currently requesting copy of the title. sama na rin namin tax declaration.

SPA, we have yet to ask...pero will take note.

**tsupermario** · April 2nd, 2007 08:09 PM

Originally Posted by Chip

a little off topic: totoo bang condominium units usually revert back to the developer after XX number of years? I read here before na thats how ayala operates. If so, how about townhouses?

RA 6552 - covers condos and townhouses.
HTH

**Chip** · April 2nd, 2007 09:14 PM

Originally Posted by tsupermario

RA 6552 - covers condos and townhouses.
HTH

thanks for the link, if i understand what i read correctly, it deals more with late payments and assigning someone else to continue the payments. i cant find any mention of property reverting back to developer. or is that what you mean na illegal yan?

**tsupermario** · April 2nd, 2007 09:30 PM

sir under the act, if the contract (of sale) is canceled the property is reverted back to the seller.

**Macky** · April 2nd, 2007 11:43 PM

Originally Posted by swordsman

- At what point should we give the earnest money? Is this refundable?

Standard earnest money is good for 45 days reservation unless specified otherwise on your contract. It is non-refundable but can be deducted once the sale pushes through. The only provision of refund is if the seller is at fault for the sale not pushing through.

Originally Posted by swordsman

- Earnest money should be named to the owner, right? How is this done when owner is abroad?

Check can still be deposited if the owner still has a local bank account.

Originally Posted by swordsman

- Since the owner is abroad, how would we proceed with the sale?

The same thing happened to us when we were selling our property in Arkansas but already moved to St. Louis. A local Arkansas realtor took care of everything as we signed a contract authorizing him to sell our property (Contract to Sell). I think SPA is more appropriate in your case if you are dealing with a middle man instead of a realtor.

Originally Posted by swordsman

Finally tired of renting, so we're planning to buy a small two-storey, two-bedroom townhouse. We plan to put this thru in a housing loan thru a bank. If the loanable amount is sufficient and within our budget, we'll push thru with the loan(and hopefully be approved) and are expected to give an 'earnest money' while the loan is being processed.

We've outgrown our 2BR/1BA/1 car garage townhouse and we're currently selling for the same price we bought it 4 years ago. We've built some extensions (dirty kitchen and the 1 car garage) since 2003. The subdivision is gated with 24hrs. security and is located in Las Pinas City.

We are also selling our 2BR/1BA 63sq.m condo unit * 901 Tower B Regalla Towers EDSA corner P. Tuazon St. Cubao, Q.C.

Please send me an email * mdx981*yahoo.com if you are interested.